RI Department of Labor and Training requests three-month line of credit for Unemployment Insurance Trust Fund

July 8, 2011

The RI Department of Labor and Training has requested and received an $85-million, three-month line of credit from the federal government for the state’s unemployment insurance trust fund. The line of credit is both guaranteed and immediate, and will help cover unemployment insurance benefits payments for the months of July, August and September.

Since 2009, unemployment insurance trust funds in 33 states have borrowed from the federal government in order to pay state unemployment insurance benefits. Over the past two years, Rhode Island has requested limited-term lines of credit for the purpose of paying unemployment insurance benefits whenever it projects that the balance of state’s unemployment insurance trust fund will be insufficient to meet demand. Previous to its latest line-of-credit request, Rhode Island had borrowed a total of $315.4 million from the federal government, but had paid back $93.0 million of the principal, thereby reducing the state’s total of federal borrowing to $222.4 million.

ABOUT DLT: The RI Department of Labor and Training offers employment services, educational services and economic opportunity to both individuals and employers. DLT protects Rhode Island’s workforce by enforcing labor laws, prevailing wage rates and workplace health and safety standards. The department also provides temporary income support to unemployed and temporarily disabled workers. For more information on the programs and services available to all Rhode Islanders, please call the RI Department of Labor and Training at (401) 462-8000 or visit the web site at www.dlt.ri.gov.